July 05, 2016 - Contax Partners’ Energy Feed

SABIC/Aramco agree to study oil-to-chemicals project

Petrochemicals producer Saudi Basic Industries Corp (SABIC), has agreed to carry out a joint feasibility study with national oil giant, Saudi Aramco, for a proposed oil-to-chemicals project. While completion date for the feasibility study is not clear, the company revealed plans for this project in May and stated that the project would cost as much as USD 30bn. This complex will process petrochemicals directly from crude oil instead of first refining the oil into products such as naphtha.

Iran's oil investment contract to be ready by summer

Iran's new oil & gas investment contracts for international firms are expected to be launched this summer where companies will be invited to bid to develop approximately 10 to 15 fields, said Oil Minister Bijan Zanganeh. The Iran Petroleum Contract (IPC) is key to the country’s plan to raise crude production to the pre-sanctions level of 4mn barrels per day (bpd). While the launch of these contracts have been postponed several times in the past, Mr. Zanganeh stated that the final draft of contracts will be approved by the government shortly after several amendments take place. Oil majors have said they would go back to Iran if Iran made major changes to the buy-back contracts of the 1990s; as companies such as France’s Total and Italy’s Eni have said that the companies have incurred losses, the terms of the contract would be a major deciding factor.

DEWA selects Masdar-led group to build 800MW solar park

DEWA has selected a consortium led by Masdar to build the 800MW (Phase III) of Sheikh Mohammed bin Rashid al-Maktoum Solar Park.The consortium led by Masdar includes Fotowatio Renewable Ventures (FRV) and Gransolar Group. The solar park, planned to be the largest single-site solar park in the world, is expected to produce 5,000MW by 2030 with a total investment of $13.6bn.

BP unlikely to invest in Aramco’s IPO

At the St. Petersburg International Economic Forum, international energy giant, BP, hinted that it will not partake in Saudi Aramco's IPO. The IPO for Aramco is expected to take place next year and is likely going to be less than 5% of the company. While rumors had suggested that BP might take part in this deal, CEO Bob Dudley stated that it is unlikely that the company would be a financial investor in Saudi Aramco. Earlier this month, Lukoil made a similar statement regarding its interest in investing into Aramco's IPO.

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